What must be clearly illustrated in all sales material for market value adjusted annuities?

In sales material for market value adjusted annuities, it is essential to clearly illustrate that the market value adjustment can result in either an upward or downward adjustment. This feature is fundamental to how market value adjusted annuities function, as the final value may fluctuate based on changes in interest rates. By presenting this information transparently, potential buyers gain a comprehensive understanding of the investment's risks and rewards, ensuring they are fully informed before making a financial decision.

Clarifying that market value adjustments can go in either direction helps set proper expectations regarding the potential performance of the annuity. This is particularly important since clients need to be aware that the annuity’s value may decrease if interest rates rise, which could affect their returns if they withdraw funds before the end of the term. Such transparency is vital in the sale of financial products to foster trust and compliance with regulatory standards.